The fixed-line and mobile operator Emirates Integrated Telecommunications Company (du) has signed a deal for a US$220m three-year loan as part of its capital optimisation programme.
In a statement on 6 June, du said that the lead arrangers for the loan…
The fixed-line and mobile operator Emirates Integrated Telecommunications Company (du) has signed a deal for a US$220m three-year loan as part of its capital optimisation programme.
In a statement on 6 June, du said that the lead arrangers for the loan are National Bank of Abu Dhabi, Emirates NBD Bank and Samba Financial Group, while MashregBank is acting as co-arranger.
The loan carries a margin of 1.45% over LIBOR.
The company said that the loan would be used for the repayment of its existing loan facility, maturing on 30 June, and for continued investment in the company.
The CEO of du, Osman Sultan, said that the loan facility, in addition to strategic vendor agreements and a rights issue that was oversubscribed in June 2010, had “provided du with significant capital that will be deployed to facilitate our transition as we mature into the next phase of our development”.
In September 2010, du signed an agreement for kfW IPEX-Bank, part of the German kfW Bankengruppe, to provide it with US$207m to purchase services from European vendor Nokia Siemens Networks.
The US$207m export credit facility was backed by the German export credit agency Euler Hermes.
As well as fixed-line and mobile, du also provides broadband and IPTV services.
